Travel + Leisure (TNL) Morgan Stanley Global Consumer & Retail Conference summary

Industry transformation and evolution

• Timeshare industry has shifted from fixed-location ownership to flexible, hospitality-branded experiences, with major brands now representing 80% of the market.

• Owners can now use their timeshare currency for hotels, cruises, and diverse vacation options, a significant change from pre-2008.

• Industry consolidation has led to stronger balance sheets and long-term commitments.

Business performance and strategic pillars

• Core vacation ownership brands continue to perform well, with volume per guest (VPG) remaining above $3,000, up from pre-COVID levels.

• Incremental growth is targeted through new brand launches and acquisitions, such as Encore and Sports Illustrated Vacation Club.

• Focus remains on maintaining high satisfaction and retention rates, with 98% retention among paid-off owners.

Consumer quality and owner base

• Minimum FICO score for new originations increased from 600 to 640, raising average FICO to 742.

• Higher FICO and income standards have improved portfolio quality and close rates.

• Owner base is stabilizing post-COVID, with potential for growth as new owners typically have higher purchasing power.